News
Air Lease Corp forecasts growing demand; reaps Q3 benefits from industry recovery
November 5th 2021
Influential aircraft lessor, Air Lease Corp. (ALC), said an improving airline industry delivered good third-quarter results, including record high rental revenues, total assets, and lease placements. Read More » “We clearly see growing demand for new aircraft, especially for single aisle aircraft, and we are back to 2019 levels in terms of proposals being requested by airlines,’’ said ALC CEO, John L. Plueger. “With our conservative and disciplined business model, we have profitably placed 67% of our orderbook, despite pandemic challenges, and we remain optimistic about the future of our business and global airline travel.” The company placed 64 aircraft with lessees in the three months to September 30, the highest number for a quarter in its history, and reported a record US$520 million in rental revenue. It took delivery of 16 aircraft, representing US$808 million in aircraft investment, to bring its operating lease portfolio to 370 aircraft with a net book value of US$22.1 billion. Operating cash flow for the nine months received a US$138 million boost as more than half of lease deferrals granted to clients were repaid. “With a long road remaining ahead for the recovery of airline financial performance, the industry is now relying on ALC and the leasing sector more than ever to achieve fleet modernization objectives, to reach environmental sustainability goals, and to meet capital requirements. We see this trend persisting for the foreseeable future, said ALC executive chairman, Steven Udvar-Hazy. “Global air traffic continues to improve and we believe international volume is poised for a strong recovery as travel restrictions are relaxed,” he said.
